LAWS

RESOLUTION No. (3~2)

In the Name 0/ the People,

'The Rev.ollttionary Command Council,

In accordance with the provisions or Para. (a)of Article 42 of the Interim Constitution, The~(cvolutionary Command Council, have decidedin their meeting held on 17.3.1977, to promulgatethe following Law:

.LAW No. (43) OF 1971,

FAl~MERS COOPERATIVES SOCIETIES

Chapter 1

GBNERAL PROVISIONS

Article 1

The farmers eooperative society, is a farm­ing institution with a juristic independent pers0­

nality and economic, social, and professionalnature which endeavours at serving its membersand the society: deepening the revolutionarynwareness: establishing the national and socialiststruggle within the ranks of the peasants masses;and contributing in building up a developedsocialist ngriculture within the general objectivescf the State.

LAWSThe expression "farmers cooperative society"

covers the cooperative farm estnbllshcd underthis Law.

A farmer cooperative society nhnll be definedunder the provisions of this Lnw by tho (Society).

Article 2

Every society shall hnvo n. name indicatingto its fnrming cooperative character, head­quarters, type, and limits of its responsibility.

Article 3

The society shall be comprised from tenmembers and more.

Article 4

Societies shall be divided as follows. as far8S the financial responsibilities and commitmentsof their members are concernedt -

,\rUcle 6

1. Every society shall have an internalregulation specifying nil data related to itsnffnirs, functions, and responsibilities in accord­ance with the provlclons of this Lnw.

2. In coordination with the General Union(If Farmers Cooperative Societies, t: e Ministryof Agriculture and Agrarian Reform shall pre­pare 11 standard regulation 08 aguideline for thesocieties in drawing up their internal regulations.

Article 7

It is not permissible for a society to startto perform its activities prior to advertising itsregistration by the Ministry of Agriculture andAgrarian Reform. Procedures of registrationand advertisement shall be determined by lnstrue­tions.

Article 8

ArtIcle as

1. Societies with limited liability, where The structure of the farmers cooperativethe member is responsible as much as the value : movement shall comprise the following organiza­of his subscribed shares, or as much as is i tions:

provided for in the Internal Regulation. I 1 So' ti tabl' h d b th . d"d Is. eie res es IS eye 111 IVI ua ,

2. Societitls with unlimited liability, wh~re I whic~ shall be either mUl~i-purposes,or s~iali.members, with all their assets and properdes, zed 10 one branch of agricultural production orare jointly responsible for all commitments and economy.

debts outstanding against the society. 2. Joint societies, established by two or

more societies on the Nahiya (Sub-District) orQadha (District) level where there is no Nahiya.

1. The working area of every ·society shallbe determined by a proposal of the General Unionof Farmers Cooperative Societies and a decisionof the 'Ministry of Agriculture and AgrarianReform.

2. It is nc; permmlsstble to establish morethan one society of the same category In onearea, unless at the proposal of the General Unionof Farmers Cooperative Soclctics and the deci­sions of the Ministry of Agriculture and AgrarianReform.

3. Branch union, established on Qadhalevel of joint farmers Coopcrative Societies andthe Societies in whose working areas no jointsocieties are established.

4. Local union of fanners cooperativesocieties in governorates established from branchunions in Qadhas and joint societies in whoseworking areas no branch unions, and soeletieein whose working areas, no joint societies orbranch union are established.

5. Specialized societies, establlshed oncountry level.

The Official Gazette No. (27) "... 6.7.1977

tAW~2..S ----

Article 10

The activity of a society may be restrictedto one branch of agricultural production oragricultural economy, in which case the societyshall be considered as a specialized society.

10. To provide consumer products to theirmembers and open cooperative shops to them.

11. To participate in supporting and dis­scmu-uting rural industries and processing ofplant and animal products.

12. To participate in providing social andcultural services to its members and to its work­ing area, training and rehabilitating its membersraising their health standard, and eliminatingilliteracy among them.

13. To encourage savings operations andinvest the savings in its farming activities.

14. To appropriate and rent agriculturalst ructures, machines, and implements, and trans­port means for expanding the use of agriculturalmechanization, and facilitating plant and animalpests and diseases in its working area, in collabo­ration with the State; relevant authorities.

ill_~ al,d use, in coordination with the relevantauthorities of the State.

G. To carry out agricultural cooperativeproject!'! for its benefit and that of its memb~rs

within the ~tnt~; general agricultural plnn andpolicy.

i. To provide agricultural production meansand organize the collective and lndlvldual benefit.t hercfrom by the members.

8. Organize the obtninment by the mem­bers of In - kind and cash - credits for pro­ductive, marketing, and consumptive purposes,processing of agricultural products, and estab-

i lishlng rural handicraft industries.

9. To market agricultural crops and animalproducts, and provide cooperative marketingrcquisitis such as stores, transport means, bsgs,crats, etc.

Artlc1e !l

5. To participate in executing the State'splans in the collective and individual land farm-

4. To educate and orient farmers towardsa strict execution of the Laws and Regulationsrelating to rural development and agricultural

advancement, deepen the practice of popularcontrol over the relevant authorities, and stabilizethe basis and principles of democracy in workand production.

3. To build and stabilize socialist relations,orient farmers towards their fundamental strug­gling role in the Revolution and in building theunified socialist community.

Chapter f

IJPRT'O~l;S AND TASl{S or rtt« SOCIETl"

2. To disseminate and deepen revolutionaryconsciousness, :lffirm national and socialiststruggle, emphasize the necessity and importanceof organizing the farmers for developing ofproduction, increasing natlonal income, improv­ing the farmers economic, social, cultural andhealth conditions, and keep awake performanceof their duties.

1. Action for protecting the Revolution anddefending it, resolutely confront conspiracies andintrigues plotted against it, and sincerely anddevotedly endeavour at maintaining and inculcat- :ing the Revolution's achievement!'! and gains. .

The nctivity of the soclcty covers all activi­tite's on farming syndicating, agricultural COil pel a­tlve production, consumptive of svccessive stages,economic and social services, as may be requiredby the needs of the members r nd working area,in particular the folluwing: -

6. Genernl Union of Fnrmcrn Cooper»,- "Soclotlee, ostnbllshed on country level of ,,1\guvernoratos unions and spoelnlized soctctlca

ertnbllshed on country level.

The Official Gazette No. (27) 3 6.7.1977

I~AWS

Societies are cstablishod in accordance withthe provisions of this Law under the follo""inrirules:

ArtMc 11

The soclcty shall draw up 1\11 annualprogramme of Its activity within the frameworkof the State: general development plan, and itsmembern nrc committed to execute it. Proceduresto be taken in ease of broaching thereof shall bedcfil1ed by instructions.

3. Instructions shall regulate the mannerof addressing the invitation to convene thegeneral assembly, its time and procedures. eondl-

Chapter 4

ADMINISTRATION OF TIlE SOCIPJTY

Article 14

1. The General Assembly - Is the supremepower in the society and possesses all administra­lion and direction authorities, drawing up of thesociety's general policy, putting plans that aimet realizing its objectives, and it may take anydecisions and recommendations that it deemsappropriate and conforming Wit'l the provisionsof this Law and the society's internal regulation.

2. The general assembly comprises allmembers recorded in the membership register.Every member has one vote, irrespective of theamount of his shares.

SIXTHLY - Instructions shall organizeprocedures of establishing societies. conditionsof membership, and causes of forfeiture th,..rcof.

Flli'THLY - The Minister of Agriculturert I'd Agrarian Reform may, at the proposal ofthe General Union of Farmers CooperativeS,.cieticu, accept tcchnlclann and apecialists"M;);Oyl'd in the working area of socletlcs asmembers therein, provided they terminate, fromthe profcsslonal point of view, their relation with1heir uions.

l"OUR'rIILY .- The Higher AgriculturalCouncil may change the scope of membership ati­pnlatcd under Paras. 1.2. and 3 of this Article, ifthe development of the farming cooperativeI11"·..omont :'10 require.

111 exemption of tile prov. riona of LabourCode and the Instructions issued accordinglyt here shrvll be applied upon :>gricu)lu"':>.l "lOrI;~n'I

v.ho are members of societies as far as theI ~'::CClltiOI1 of duties according on them as mem­i bers of the societies.

Article 12

ES]'/WUSlflllFJNT OF SOCIETU.'.'~

Usufructuaries of Agrarinn Reform Lawwho have no societies in their areas.

Cultivators, persons wUh agricultural rela- !tion, agricultural workers, ami. farmers idwelling in its working area, provided thatthe area of land appropriated or passed toor under the disposal of an:,r of tho foregoingshall not exceed twice the distribution limitsstipulated under Ait'arian Reform Law No.(117) of 1970.

THmOLY - Cooperative collective farmswithin 0: outside Agrarian Reform areas, comp­rising those who share with their work andagricultural productlon means in investing theirresources on tile basis of collective ownership ofproduction means and collective work, and dlat­rlbutlon of income in conformity with socialistcooperative principles and methods.

2.

1.

FIRSTL.Y - Societies within Agrarian IV~·

form Areas; comprises farmers to whom agrarlaureform land had been dlutributed, rented. ormanaged. III such -ireas, the society may acceptto its membership anyone whose land area docsnot exceed the distribution ceiling, :m:l Iarmersand agricultural workers dwelling within itsworking area,

SECONDLY - Societies outside AgrarianReform Areas, comprizing:

The Official Gazette No. (~7) 4 6.7.1977

tAWS

ArHrfe 131.

tlons of the validity of the convention. methods 3.of objecting to its decislon, nnd action to betaken agnlnst members for f:dling' to attend ~ho

mcotlngs.

4. The instructions shall ascign the duties ;and powers of the Board of DIrectors, speclallza- Ition and responsibilities of its members, condi-ltions of membership and duration thereof (whichshall not exceed two years), Causes of forfeiture \2.and loss thereof, and all that is related to therunning of work therein. I

! Article 18

The reserve fund shall eonsist of:

A percentage of net income.

Enrolment fee specified in the internalregulation and the amount thereof deter­mined by the General Union of FarmersCooperative Societies.

Iutcresta nnd due! unelalmed during five'years from the date of their ma.turity.

(c) The shares nrc nominal, and it i!3 notpermissible to transfer or to cede themunless to another member or to aperson accepted as a member to thesociety, with approval of the board ofadministration.

(d) No interest is paid on the minimumobligatory shares. It is permlsaible todistribute interest not exceeding 6'0of the value of additional shares paidin e~~ capital.

(e) Every member shall pay an annualsubscription to be determined by theGeneral Union of Farmers CooperativeSocieties.

The instructions shall specify the methodof paying and refunding the value of sharesas well as adding thereof to others.

.\rO('le 17

(:1) The share fund shall consist ofunlimited member of shares. Providedthat the number of shares subscribedb:' My member shall not be less than 3shares and not more than 11 70 of thetot~11 shares isrucd by the scclety.

(b) The internal regulation of the societyshall determine the value of the share,which shall not be less than twoDinars.

Montes or Iundc and deduct ions sti::'UlatMfor under the internal "l':~ulation.

3.

1.

2.Article 16

Chapter 5

SOCIE'fr"S FINANCE AND ACCOUNTS

The society's finance shall consist of thefollowing:

1. Share funds.

2. Reserve funds.

1. Every society shall have a Boarr' of I

Directors to run its affairs. a shnll consist of i

at least five members but not more than nevcn.They shall be elected by the general assemblyout of its members by public voting. Af theproposal of the General Union of Farmers Co­operative Societies, the Minister of Agricultureand Agrarian Reform may add to membershipoC the Board of Directors not more than threeporsonn from the assembly members, shouldl,,-,cc~,'lity so require.

2. At its first meeting, the Board of Direc­tors sh0.11 elect, from its members, a chairman,vlce-chalrman, secretary, and treasurer.

3. The society's chairman his deputy, orwhoever shall be selected by the Board of Direc­tors shall undertake to represent the societybefore the others and the Law in all mattersrelating to its affairs and those of the members,if they so wish.

The Official Gazette No. (27) 6.7.1977

4. Cash, in kind, and OUWI' r.1'!lnt~l. wills,asslstanccs, donatlons,

O. Any other allocation" which may be deci­ded upon by the society Ll uccordancc withthe internal regulation.

Artlclo 1!>

It is not permissible lo dispose of thereserve fund unless in extreme urgency, withthe approval of the members of the generalassembly, the general union, and the Ministryog Agriculture and Agrarian Iteform.

Article 20

Income shall be distributed in the society !

according to principles and rates to be specifiedin the instructions, provided that the necessityto develop the society's, capital should be takeninto consideration and in such determination.

Article 21

1. It is not permissible to sell the share oZthe member, mortgage or distrain shares or anyright he has in the society in settlement of adebt due against other than the society.

2. The society may place under mortgagea member's shares in the stocks, capital and yieldand any amount due against it in settlementof its debts. It may recover its debts outstand­ing against him from any amount credited to Ihis account or due to him. Debts of the societyagainst a member, including unpaid value of ,shares and subscriptions, are deemed privileged I

I

debts, and it may collect them in accordance '\'with the Law for the collection of Debts Due toGovernment or the Execution Law. '

Article 22

Amounts due to the society shall havepreference above all movable and immovableproperties of its debtors other than membersand come in sequence after the amounts dueto the Government.

Artlcle 28

The financial year of the society shallbegin with the beginning of the financial y~ar ofthe State and ends with its end with the exceptionof the first financial year, which begins on thedate of establishment of the society and endswith the end of the State's financial year.

Article 24

The society must deposits cash funds inits name with the Agricultural CooperativeBank or its branches in the governorates, exceptfor the amounts which the instructions permittheir retention in the society's safe.

Article 23

1. The society shall keep its accountsaccording to the method specified by thecompetent authority at the Ministry of Agricul­ture and Agrarian Reform, and the society mustkeep such registera and use such cash and payment vouchers as per the speciemen specifiedby t1~e said authority.

2. The society shall present its registersbefore starting to use them to the competentauthority at the Ministry or to any otherauthorlty authorized by it for numbering,stamping and approving of the same.

3. The society's accounts shall be auditedat least once a year by the authority referredto in this Article or by a chartered accountantwith its approval.

Article 26

The society shall insure its propertieswhich are subject to risks within the limits.specified in the instructions.

Article 27

For the purposes of applying the PenalCode, the society's properties shall be deemedas public properties, its personnel and membersof board of Directors as Public Officials, and itspapers, registers, and seals as official papers.registers and seals.

The Official Gazette No. (27) G 6.7.1977

LAWSCllaptcr 6

CONTROL

Artirle :n

2. The board of directors of the societyhas the right of objection to the Ministerof Agriculture and Agrarian Reform against thesuspension of execution within thirty days fromthe date of being served with the decision ofsuspension. The decision issued by the Mihlsterin this respect shall be considered as final andbln.Img.

1. The relevant authority at the Ministryof Agriculture and Agrarian Reform shall control

I and inspect the works of the socicty and ascertnin its enforcement of valid Laws, Regulationsand Instructions. It may suspend the executionof any decision taken by the general assembly

II or the board of dircctors within fifteendays from the date of its scrving on it if suchdecision is contrary to the Law, Instructions, orthe society's internal regulation, or contradictsthe general plan of the State.

Article 30

Artie-Ie 29

Al'tlt'le 28

The general assembly shall speclfy everyyear the limits of the society's needs of creditsand the commitments to be borne by thesociety during the following year. Also, it shalldetermine the maximum limits of loans tomembers, their conditions, and intcrests andcommissions levied therefor or for other ser­vices.

Within the limits specified by the generalaasembly, the society may borrow, from govern­ment or other authorities, cash or in kind Cundri 'necessary for the realization of its objectlvcsand milking loans to its members. The instruc­tion shall spccify the conditions of borrowingand lending.

1. At the request of the General Unionand the confirmation of the Ministry of Agri­culture and Agrarian Reform, the HigherAgricultural Council may defer the AgriculturalCooperative Bank. Loan and interests due ona society for two years in addition to the1rtatutory period of deferment authorized by theBank and for one time only for each case, andto increase the amount of the loan and re­arrange its instalments with interests in 0. man­ner suitable with the so:\~ty's financial condi­tions, if there are necessary causes calling forthe same. In such a case the Council shallguarantee the loan towards the Bank.

Article 32

The Ministry of Agriculture and AgrarianReform shallnssign CooperativQ supervisors andinspectors, accountants auditors and specialiststo cover the scciety's activities and to help itin performing its tasks.

Article 33

The General Union of Farmers CooperativeSocieties shall set up a specialized body forcontrolling and supervising the works of thesocieties, including the provisional unions andthe instructions shall detennine the operation

\ system of such a body.

2. The societies and their unions mayborrow, under guarantee of the Higher Agricul­tural Council, from the Agricultural CooperativeBank cash or in-kind advances for productive,eonsumer, or marketing purposes, in realization.of their objectives provided for in this Law.

Chapter 7

UNION AND MERGER OF SOCIETIES

ArtIcle 34

Societies shall associate among themselvesto establish joint societies in the same manneras provided for the societies in this Law. for

The Official Gazette No. (27) 6.7.1977

LAWSrcalizh«; c';'l'tain objccl ivc.: f. ';"'.h;ch it ,;a~;

establir.hcd. TIll' iusl rucl ionn rllall H!"'cify t.hr­

method of l'lll1l1ing tho worf:» (J[ the joint m·:kty,011 itR fin:1l1eial nnd admlnist 1':Itlve met len;. it::

control, dissolution, nnd liquirl-ition.

t ,':\111\:17;. . ;'1 ici!,;.tin;: ill th.- itnI'1l'r.1Cl1t.:'ltionI l>l' agl'icn1lIII :11 productive pln», and all what is

!'l,LI:,!',1 1.) t hc development of the plant nnd

nnima] wealth.

Arlide 35

1. A society may merge with anothersociety of similar purposc.i b:: a d,'cj,:ion 0. theL;cnernl nsscmbly of each anti the approval of

the G:mcrnl Union of Agrlcultura! Coopcrntivo~;ocietics and the Ministry of AgTknltur(' andAgrarlnn Reform.

The govcrnorat c union shall be managed by:1:1 C:"'utivc o~nce comprising of nine members

• a:d tvo a ll-ruatc members elected every threeyr~:m: 1.1y n ;.:'''I1:'ral assembly consisting ofrc'jj,C ut r.tive or ::ocic.tk:;, collective farms, jointsocieti .. , !;Jccinl:st:-:, and branch unions in thegoven1u;'ate,

2. Merger doclslons taken by the I!cnc'ralussomblics of the relevant societies shall bedeemed IlS e(';l~racts under which the rightsobligations, and assets of both fChn 11 be' tl cnsf'cr­

red to the new societies,

3. The board of dlrectorn of each 01the merged societies should not. dispose of anyof its affnirs from the date of being served

with the decision. It should hand over to thenew board all the society's funds, rcS'i:~tr·l·S. and

documents, and each one of the responsiblepersons should hand over all documents, papers,instrument, and data in their pcsscssion to thenew board of directors,

Article 38

Q:HlI1i1 !In:1 governorate unions shall have ajuristic persouallty and financial and administra­tive independence, TIle Instructions will specifytho rrocerlul'l"; of their establishment, member­rhip, Iinancc, method of carrying out theirworlc«. ~11'd all 1~:1.ttCl'S relating to th~ manage­1':.2111 of their affn.irl'l.

Chapter 9

(jENERAI" TJNION OF FARlI1ERS

COOPERATIVE SOCIETIES

Article 39

Disseminate and deepen revolutionary aware­ness, impress national and socialist struggleamong the members, and participate inbringing about the agricultural revolution inthe country.

Mobilization and organization of fannermnssea to protect and defend the Revolution.maintain its gains, nnd develop its achieve­ments.

2.

1.

A General Union of Farmers Cooperativesocieties shall be established on the country level

I to represent the various branches and sectorsof the fanners cooperative movement. It shallundertake the following responsibilities andspecializations:

Article 36

Chapter 8

FARMERS COOPERATIVE UNIONS

A branch union shall be established in everyQadhn nnd a local union in every governoratefor the Farmers Cooperative Societies aiminglit assisting the societies in maintaining theachievement of t.heir purposes, serving theinterests of their members, defending t.heirprofessienal rights, providing their productionneeds, marketing and processing their plant andanimal products, providing social and culturalservices, participating in disseminating coopera­tive culture and socialist awareness among rnem­bers, drawing up programmes necessary for I

The Official Gazette No. (27) 6.7.1.917

Lt\WS;l, Purtlciputc in pnt.ronizhur t h« intl'n''''', of

fnrmers nnd d,.ff>nding- their rurht», nnd

PIlI!t'aVO\ll' til rf':dizp tilt' ~tI'1Ig-g-1ing unity

among- their ranks,

Artirlt- 41

Artic'le 10

1. Annu.u gT:UlI:; a llocnted by the State.

Self revenues of tho Union from its activi­

tics.

')oJ.

FIR~TLY. -- The General Union shall have

n juristic lH'rsonality and n financial and adrni­nist rat ivo in.lcpondcncc. Its h('adqu~rt(>r!-1 snall

br- in the Ca pi tal IBa~htiad City).

SECO.-lDLY - The Union's f'inanee shall

consist of; .

2. /\ pcrcentnge of tho societies' members

annual subscription.

3, The Central Council shall elect from

among Its member an executivc bureau of 21mrmbcr. The Council shall select from among

tho members of said bureau a chairman, two

d-put.ies to the chairman, and a secretary ~(>neral.

2. lis members shall be ('}Pcted in :l ~1'1H'ral

runfr-rr-nec comprising' all nu-mbers of the hoards

of directors of joint societies. spoci» 'Ized~;llciPlil'::, ornnch unions, and executive oHices of

local unions in govcrnoratl's, Duration of member­sh ip on 1111' said Council shall be thrve ycn rs.

1. TIll' Gr-nernl Union shall hnvv « C('Hlral

Council consistuur of at lenst 121 1111'mlwl'!4,

Art. to' end any disputr-s that. may arise

:lI\long- tho structural unit s of t lu: f:l rmors

coopr-rat ive movement.

Assi;;t th: societ.ios -unl 1111 ions in n':l lizing'

their P\lI'JI():'I'~;,. espccin lly credit. sup\,]~' and

lll:lrkdil1g nt"'I'atiO!lR,

Hold seminars and conduct. studios rolatcd

to various aspects of the Iarmors cooporn t ive

movement,

Disseminntc and support tho farmers CP­

opcrut.ivc movement. link Iarr.u-rs m:lssr'S

tn it, nnd prepare conscious Il'adl'l'shil' suit­

::hlp for ma Illtg'in~~' till' movomc-nt till sound

democratic basis,

ItI'pr'eSI'lit till' Inrmvrs coopl'rativl' movement

at horne and abroad. oxcluuu;« coopcrnt ivc

l'xl)(>ric!lel'~' strengthen cnlltaet~ with fn r­

mors coopr-rnt ivv movcmcut in Arab and

friendly countries, and part icipatc in :,:I'('ng-­

tlu-ning' relations among Arab nn t ion count­

rie~ and maSSCH cvr.'rywIH'!'e and on all lr-vr-ls.

I'ar!.icip:lh' in I'xp('ul ill:~ \111' ~latp':.; plnn in

tilt' ng-ric\llturnl spf'\or,

8.

7.

.9,

G,

r'd.

4.

10. Generalize and encourage socialist contests

in the Iirld of production increase and

optima I !'pl'formnnce of dut il'~ whr-thrr

among 1111'ml)('rH of t1w sarn« ~;O('il'LY or

among- socict.ies and unions on ~ov(,l'l1()rat('s

and country levels,

11, CCDrrlil1atp and link hl'lv:I'('n t h« f:lnn::l;~,

coopr-rnl.ivr-, agricultural f'f'ctor and all n1h,'1'

~;f'rtor~.

1:~. To SU1H'I'vis(' soeidies. includinu gm'('1'noratp

unions subjected to t lIP provisions of this

Law. nnd render materia! nml moral a~;sis­

lance 10 thl'm.

-1. Contributions and donations.

TII1Rf.lLY - Members of the cxccut ive

burr-aux. ar d number of members of societies

boards of directors, branch and local unions,

and till' General Union, and their monthly allow­

nnc('; shall Ill' assign.,.l by tilt' Central Council

of till' GI"",ra I Union.

FOURTHLY - The inst ruct ions shall HIll'dfy

till' procedures For ('stahlishin~ the Union, the

l11:lI1lH'I' of pl'1'formi.~g- its duties, exercising; its

specializnt ion and its ndministrnt ivr-, financial,

nnd nccount ancy affairs, and all matters relating

10 th .. 1'1111Itin:~ of its husirwsH,

The O!flrial (;:\i'l'\lr No. (~j \ ~ I G.7,1n77

tAWSChal)In 1/1

1'11' tvn.t«: ,,:s

Artidt' ·t·~

Soejelit's and unions shall ('nj,)~· th, follow­

ing: -

1. Ex('mptions nnd privilegvs enjoyed bv i.idust­rial projects in accordance with till' provi­

sions of Dovr-lopmcnt and Oq,:-anizat lOll of

Industr-ial Investment Law No. (22) of 1ni :~.

rnd any other exempt ions »njoyc: I hy till'

industrial projects at the recommonda tion

of the competent. authority at. the Ministry

of Agriculture and Agrarian Reform andthe approval of the relevant Minister.

2. Preference over individunls and 1':·;",11 ,.

companies in dealings with official and semi­

official departments in the event of equal

offr-rs.

r1117Jllcr 11

DlRROU!TlON AND IJ1QlJlDATTON

Articlf.' 4:l

A society is dissolved at the recom-

mendation of the General Union and by a

decision of the Minister of Agriculture and

Agrarian Reform in the following cases: -

1. If it is proved that it is unable to realize

the objectives for which It was established,or it was unable to fulfil its commitments.

2. If the interest of the general structure ofthe Iarmers cooperative sector nccr-ssitntcs

the dissolution of the society or its mercer

with another society.

'1. If till' number of members has become il'!{sthan tr-n and iH nnt ~:llJ1J1lpnwllte<l within

t hl'pl' mont hs.

Artil'lt· H

TIIP Ikei:;jon of dissolution sh-i ll be intimated

10 the society immediately on its ;:-;!{ue. All pel­

sons concerned have t he right to object to such

a docision b(ofon~ the Minister of Agriculture a nd

l\gral'ian Reform within thirty dnys f'ro.n the

date of it s publication in the Official Gazette.

The decision issued by the Minister in this

respect sha 11 be finn I.

A rtk-le 4:')

Mr-mbcrs of a society in rcspr-ct of whom

a tlpcisiou is issued to dissolve it. its managers

and ~'mployees, arc not permitted to continue

with it(; nctivit ios or dispose of its properties.

Aritd(" 46

Th" instructions shall regul:1tc the rules and

J11'O':~('dllr(,f1 of dissolut ion and liquidation. and

the method of distribution of the liquidation

outcome. and shall publish the decision issued

i.i tr.is respect,

Cltapt cr 12

PUNISJIMI·:NTR

Artic'le 47

Without prejudice to any more severe

punishment provided for unrlcr the Penal Code

or any other Law in force, a punishment of

imprisonment for not more than three years

and a fine of five Hundred Dinars, or either of

these two punishment shall be passed on: -

3. If it becomes imposaiblr- for a socipty to 1.

continue regularly with its work either f0r

the continuous disorder of its work, or that

it has departed from its object ivos and the

principles stipulated by the Law, the instruc­

tions issued thr-roundor. and t hI' internal

ro gula ti ()n.

Members of the board of directors of the

society whose membership had expired or

forfeited or who arc suspended from their

work, and members of the board of directors

and the staff of a society whom it is decided

to merge ...·jth another or to dissolve, if any

one of them rcfrn ins from handing over

The Official Gazette No. (27 I 10 1I.7.HI7i

LAWSIlw society's Funds, assets, books, docununt :;,

or P:'(I('I'S in his charge In the l)(,l'snf1s <1 ..1.,·

gatl'd therefor.

Evpr~' momlx-r of the society who, in surh :I

capacity, or in Lh- capacity of Iwill;': <!e!eg:t!I'11

for anothor member, obtains unright lv cashor in kino advnnccs, production inputs, or:lI1Y such other proportics and commodit ieswhich the society deals with, if such lak.",plnco as a result of dl'lilwratply givini~ ill­

correct data,

3. Founders, members of boards of directors,cooperative inspectors, supervisors, a ndsupcrintendants, auditors, and liquidators.who deliber-ately State false occurrences andfighl'es about the society in their vork,

accounts, or ri-ports communicated to t1w

rclovnnl authorities or g-encral assemblies,if they rcliborntely cancel all or-part of theoccurrences and documents relnt ing to suchcases.

4. Mombcrs of beards of directors and those

who issued shares at a value less or higher

than their nominal value.

5. Members 0f boards of directors who g-a\'e

loans, presented monies, made cash deposits,

insurance, or discount in a manner other

than what is provided for in this Law. til!'

instructions, or the society: internal regula­tion.

6. Liquidators who divided the society's m:~:ds

among the members contrary to the provi­sions of the Law, and also members of boardsof directors and liquidators who did notfulfil the commitments stipulated on themunder this Law, the instructions. or thescoloty's internal rotrulatiou.

Artid~ 4R

A punishment of imprisonment. for a periodnot exceeding one year and a fine not exceedingtwo hundred Dinars, or either of those twopunishments, shall be passed on:

1. E\'I'r~' society founder, member of its boardof c1irl'rlm·s,f'mployl'l'. liquirlnt ion or auditor.

who ref'rn inorl, wit hout duo (':I usC' nnd wit h

t 11(' intr-nt ion to impair till' objectives of

t ho sock-tv. from performing a work, or"~;\'cuting an oblijrnt ion, or carrying out annet ion st ipulatcd for under this Law, theinstr-uct iOIlH. or the !ioeil'l y' internal regula­

t ion.

~~. A ny ow' of Ihos!' who are ment jOIW(\ 1IIHkr

Pn 1':1. (1) a bove or 01her mern bors of the

sock-tv who deliberately obstructs the worksof inspectors. auditors. liquidnt ors, repro­

sentativc of ~ he General Union and theMinistry of Agricultur<' and Ag-rarian Re­form, or other public officials who are char­

gl'd with the oxocut ion of t hi« Law,

~:. An~' founder of a sock-tv who practises inits name a cooperative activity before thepublication of its registration in accordance

with the provisions of this Law.

'I. I, ;':" persons who unrightly entitles the workshe manages or enterprises he utilizes suchdenomination that indicates this work or

enterprise is all agricultural cooperative one,

or used in denominating his work or enter­

pris another denomination from which it is

understood that the work or project is asociety. In such a case 0 sentence will also

pass removing the name and publishing thejudgement in one of the local newspapersnt the expense of the convicted.

G. Anyone who deliberately publishes incorrectreports on the financial or administrativesituation of the society or 0'1 any of itsactivities.

Chapter 13

Article 49

1. Farmers societies. agricultural coopera­tive societies, and cooperative collective farmsexisting' currently should amend their internal

The OfficiRI Gazette No. (27 I 11 6.7.1977

I,AWS:.-_---~---_._-----------

l't'gulation~ in conformity with the provisions of

this Law, and should nsk for t lu-ir rr-publlr-ntion

within six months from till' cominj; into forceof the instructions issued thereunder, otherwise­

they become liable to dissolution bv a decisionfrom t hr- relevant authority at the Minist rv ofA~~ricult\ll'(' and f_gTnrinn Reform, '1'11(' inst rill"

tions slm ll sp"cify the procedures for t lu- ro­pu hl ien I ion.

? A roprcsoutat ivc of the Minlstry rf

Intr-rior shall take part in supervising' the election

of members of boards of directors of socir-t ios

and cxocut ivo offices of farmers cooperative

uions,

Arti('10 50

1. Farmers societies in areas whore there

are ::LI Inrmers cooperative societies shall be

converted into farmers cooperative socict ics in

accordance with the provisions of this Law.

2. Fanner" societies in areas whore thereagricultural cooj.crative societies shall dissolve

and their members shall join the latter, Further­

more, all their assets, rights and commitments

shall be trn nsf'crrcd to the latter, in accordancewith instructions to be issued by the General

Union of Farmers Cooperative Societies.

3. The Ministry of Interior may dissolve

any society which depart!'; from its gpncral

objectives provided for in this Law.

,\rticll' 51

TIH' (}PIH'ral Union of A~ricultllral Coop-rn­

t.ivos and the Gcncrn l Un ion of Farmers Soclct.ics

shall continue with their works until the estab­lishmcnt of the Goncrnl Union of Farmer!'; Co­

operative :-;ocielies in uccordnnc« with the pro­

visions of this Law and the im'ltr"ctions issued

tl ioroundcr.

Artlcle 52

1. ~Ypd:lls of appreciation of various gradeR

shnll ln- gl':tllh'll to prominont members who nrc

dist iuguishcd ill performing their tasks, and to

snciot ios a lid unionr who realize considerable

nchicvcmcnts in the field of service and develop­

nv-nt of the Fanners Cooperative movement.

2. The Higher Agl icultural Council shall

draw lip the required regulation for bringingabout the contents of Pam. (1) of this Article.

,\ rficle 53

~'he Higher Agricultural Council shall issue

the necessary instructions in respect of allmatters facilitating the execution of this Law.

Article s.t

Farmers Societies Law No. (13[1) of 1!J59.

as amended, shal1 be repealed. Also any text

contradicting the provisions of this Law shall

bo cancelled.

ThC' Of11cial Gazette No, (27) I~ 6.i.HI77